Tata Motors Q1 Results: Net Profit Beats Estimates On Improved JLR Performance

Tata Motors Ltd. reported profit for the third consecutive quarter in the three-month period ended June on higher domestic passenger vehicle sales and continued improvement in the performance of Jaguar Land Rover.

The automaker's consolidated net profit stood at Rs 3,203 crore, against a net loss of Rs 5,007 crore in the same quarter last year, according to an exchange filing. That compares with the Rs 2,552 crore consensus estimate of analysts tracked by Bloomberg.

Tata Motors Q1 FY24 Highlights 

• Revenue rose 42% to Rs 1,02,236 crore. (Bloomberg estimate: Rs 1,01,290 crore)

• Ebitda rose 448% to Rs 13,218 crore. (Bloomberg estimate: Rs 11,965 crore.)

• Ebtida margin stood at 12.9% versus 3.4% last year. (Bloomberg estimate: 11.8%)

“FY24 has begun on the right note, with all automotive verticals delivering strong performances. The distinct strategy employed by each business is now delivering consistent results and making them structurally stronger. We remain confident of sustaining this momentum for the rest of the year and achieving our stated goals,” PB Balaji, group chief financial officer at Tata Motors, said in a statement.

Tata Motors' passenger vehicle sales rose 7.7% year-on-year to 1.4 lakh units, while commercial vehicle sales fell 14% to 82,225 units in the quarter.

Retail sales of the company's U.K.-based arm, Jaguar Land Rover, jumped 29% year-on-year to 1.02 lakh units in the first quarter, while wholesale sales rose 30% to 93,253 units. Both sales were down 1% sequentially.

Even as sales remain strong, the order book has declined to 1.85 lakh units from 2 lakh in the quarter-ended March, reflecting "continuing improvement in chip and other supply constraints".

The British luxury carmaker's revenue rose 57% year-on-year to £6.9 billion, with a strong 960 basis point expansion in the operating margin to 16.3%.

The higher profitability year-on-year reflects favourable volume, mix, pricing, and foreign exchange revaluation, offset partially by higher inflation and supplier claims, the company said.

The company said it's £4 billion U.K. gigafactory will provide JLR with a secure supply of battery cells to electrify the next generation of vehicles.

Tata Motors' commercial vehicle business saw its revenue rise 4.4% despite a fall of 14% in volumes as improved mix and the company's demand-pull strategy allowed it to price its vehicles higher.